How Lightning Network Of Bitcoin Could Fail

Blockchain bitcoin

In the bitcoin community, the lightning network is viewed by lots of people as best hopes for the long term scalability of the network. Under this concept, the payment channels uses to complete the bitcoin transactions off-chain, whereas the blockchain will act as a backup court system for the situation, in case if there is someone who don’t want to play nice.

According to the creators, it could be used to complete billions of transactions in a second for the instant micropayments. The Bitcoin Core Contributor Peter Todd explains how the Lighting Network could fail in a conference last month.

The Failure Mode of the Lightning Network

When there will be a large number of people on bitcoin wants to settle their disputes of lightning network in short span of time on the blockchain, there is a chance of lightning network failure to take place according to the Tedd. He further states that the price to settle these disputes can increase substantially as the available space in the blocks of the bitcoin becomes sparse. There is a chance that the user must be able to issue a breach remedy transaction as the way the lightning network works.

This will be performed in order to keep  their counterparty honest. The counterparty of the users may be able to take control of the bitcoins which are tied up between the two parties in the smart contract.

How to fix this issue?

According to Todd, all the situations in which the coins could be stolen needs to be avoided at any cost. The first solution to this problem is to set an adaptive block size limit through which the miners can increase their capacity, whereas the other is that the Lightning Network’s users should be allowed to reserve place in the future blocks so that a transaction can be broadcasted on the blockchain before the timelock’s expiration.

He further says that there are tons of modification still required in the lightning network.

Bitcoin Advice

All posts published by the Bitcoin Advice Editorial Team combined. Primary objective is to provide quality content to our readers.

You may also like...

1 Response

  1. July 12, 2016

    […] Elliptic is working with the U.S. and European Bitcoin exchanges- the organizations which process the transactions in the digital currency as well as the law enforcements which identifies the […]

Leave a Reply

Your email address will not be published. Required fields are marked *

Herro